What it means for meat, supply export chains

On October 1, 2024, dockworkers from the East and Gulf Coasts began their first large-scale strike since 1977 following the breakdown of labor talks between the International Longshoremen’s Association and the United States Maritime Alliance. The ILA, representing around 45,000 workers, called for the strike after negotiations failed to resolve issues concerning wages and job protections related to automation.

“We are prepared to fight as long as necessary, to stay out on strike for whatever period of time it takes, to get the wages and protections against automation our ILA members deserve,” said Harold Dagget, leader of the ILA, signaling the union’s commitment to the strike. While the USMX acknowledged the situation, they have yet to release any new statements, though updates were posted on their website.

he strike could have a notable impact on industries that depend on these ports, particularly the U.S. meat export sector. According to the U.S. Meat Export Federation, nearly $3 billion in red meat exports passed through these ports in the first seven months of 2024, representing about $100 million in weekly exports.

Erin Borror, USMEF’s Vice President for Economic Analysis, told Meat+Poultry, highlighting potential disruptions. “As we learned from the COVID shipping issues, when there is one disruption in the shipping or the supply chain, there are ripple or domino effects,” she explained.

The timing of the strike is particularly challenging, as the fourth quarter is a peak period for meat exports, with pork production ramping up ahead of the year-end holidays. “Our production and exports kind of accelerate, typically in the fourth quarter, and especially with our seasonal increase in pork production and exports,” Borror said. “We’re really looking at the need to be able to handle and accommodate more.”